Dow surges 800 points after historic turnaround

Oct. 13 (UPI) — Stocks made a massive turnaround Thursday as the Dow Jones surged more than 800 points for the day, as traders shook off another hot inflation report.

After being down more than 500 points earlier in the day, the dow rose 827.87 points to close at 30,038.72. The S&P 500 climbed 2.60% to 3,669.91, breaking a six-day losing streak. The Nasdaq Composite gained 2.23% to end the day at 10,649.15.

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Thursday marked the fifth largest intraday reversal from a low in the history of the S&P 500, and it was the fourth largest for the Nasdaq, according to SentimenTrader.

The reversal came after a hotter-than-expected inflation report on Thursday. The consumer price index increased by 0.4% in September and 8.2% from this time in 2021 while the yearly core rate increased by 6.6% to its highest point since 1982.

The year-to-year index, the so-called headline inflation indication, slowed from the 9% increase in June but remained the highest since the early 1980s, the Bureau of Labor Statistics said. It also marked the second monthly increase after falling flat in July.

“Maybe we get this last gasp higher in inflation and from here we start to decelerate,” Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC. “I think there’s still plenty of things that could drive volatility and intraday swings are just the nature of the beast right now.”

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According to CNBC, the biggest gains were seen in energy and bank stocks. Chevron rose 4.85 %, while Goldman Sachs and JPMorgan increased 3.98% and 5.56%, respectively.

Brent crude, the international benchmark for oil prices, rose 2.37% to $94.64 per barrel.

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